Bitcoin Miners Increase Selling Activity Amid Hashrate Decline

Recent on-chain data from CryptoQuant indicates a notable uptick in selling activity among Bitcoin miners. Over the last 24 hours, miners have reportedly sold nearly 10,600 BTC, equivalent to approximately $455.8 million.

Simultaneously, the Bitcoin network has experienced a 34% decrease in hashrate since last Friday, dropping from a peak of 629 EH/s to a low of 414 EH/s. The decline is attributed to restrictions imposed by the Electric Reliability Council of Texas (ERCOT) on electricity consumption by businesses due to cold weather.

🚨 #Bitcoin Miners in Selling Mode: Recent on-chain data from @cryptoquant_com indicates a substantial increase in selling activity by #BTC miners. In just the last 24 hours, they’ve offloaded nearly 10,600 $BTC, valued at approximately $455.8 million! pic.twitter.com/JEtasWfR6N

— Ali (@ali_charts) January 17, 2024

Following the approval of the U.S. Bitcoin spot ETF, four major European Bitcoin ETPs witnessed a single-day outflow of $30 million, totaling approximately $106 million in five days, according to BitMEX Research. On a positive note, the Bitwise Bitcoin spot ETF (BITB) purchased a net 1,598 Bitcoins on the fourth day of trading after approval. As of January 17, BITB held a total of 8,309 Bitcoins, valued at around $358 million.

According to BitMEX Research, on the fourth day of trading after the U.S. Bitcoin spot ETF was approved, the four largest European Bitcoin ETPs experienced a single-day outflow of US$30 million, with a total outflow of approximately US$106 million in five days.…

— Wu Blockchain (@WuBlockchain) January 18, 2024

Bitcoin Faces Oppositions Despite The Recent ETF Approval

Greekslive analyzes current options market data and suggests that the short-term impact of the ETF’s approval is diminishing.

Bitcoin’s volatility has reached a new low in the past month, with both major terms, Realized Volatility (RV) and Implied Volatility (IV), showing significant declines. Short-term IV has dropped below 45%.

In a different regulatory landscape, the Monetary Authority of Singapore clarified that it would not permit the listing of a Bitcoin spot ETF in Singapore.

Cryptocurrencies, including Bitcoin, are not categorized as eligible assets for ETFs in Singapore. However, retail investors in Singapore can still access U.S. spot Bitcoin ETFs through licensed intermediaries.

The Monetary Authority of Singapore said it would not allow a Bitcoin spot ETF to be listed in Singapore because cryptocurrencies such as Bitcoin are not listed as eligible assets for the ETF in Singaapore. But retail investors can still buy U.S. spot Bitcoin ETFs through…

— Wu Blockchain (@WuBlockchain) January 18, 2024

As Bitcoin navigates the evolving market dynamics, the interplay of miner activities, regulatory decisions, and ETF market trends continues to shape the cryptocurrency’s trajectory.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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